Sunoco Logistics Partners (SXL) Marked As A Barbarian At The Gate

Trade-Ideas LLC identified Sunoco Logistics Partners (SXL) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Sunoco Logistics Partners

(

SXL

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Sunoco Logistics Partners as such a stock due to the following factors:

  • SXL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.3 million.
  • SXL has traded 195,845 shares today.
  • SXL traded in a range 231% of the normal price range with a price range of $2.50.
  • SXL traded above its daily resistance level (quality: 26 days, meaning that the stock is crossing a resistance level set by the last 26 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on SXL:

Sunoco Logistics Partners L.P. transports, terminals, and stores crude oil, refined products, and natural gas liquids (NGLs). It operates through four segments: Crude Oil Pipelines, Crude Oil Acquisition and Marketing, Terminal Facilities, and Products Pipelines. The stock currently has a dividend yield of 6%. SXL has a PE ratio of 76. Currently there are 9 analysts that rate Sunoco Logistics Partners a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Sunoco Logistics Partners has been 1.2 million shares per day over the past 30 days. Sunoco Logistics has a market cap of $7.9 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.03 and a short float of 2.4% with 3.26 days to cover. Shares are down 27.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Sunoco Logistics Partners as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in net income, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 76.9% when compared to the same quarter one year prior, rising from $156.00 million to $276.00 million.
  • SUNOCO LOGISTICS PARTNERS LP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SUNOCO LOGISTICS PARTNERS LP reported lower earnings of $0.56 versus $1.63 in the prior year. This year, the market expects an improvement in earnings ($1.38 versus $0.56).
  • The debt-to-equity ratio is somewhat low, currently at 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.89 is somewhat weak and could be cause for future problems.
  • SXL, with its decline in revenue, slightly underperformed the industry average of 33.1%. Since the same quarter one year prior, revenues fell by 33.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for SUNOCO LOGISTICS PARTNERS LP is currently extremely low, coming in at 13.30%. Regardless of SXL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SXL's net profit margin of 8.61% compares favorably to the industry average.

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